Shares of credit rating firms in demand

CRISIL hit an upper circuit limit of 20% at Rs 1,126.60. ICRA (up 13.71% at Rs 1,092.40) and Credit Analysis and Research (CARE) (up 4.28% at Rs 737), surged.

The S&P BSE Sensex was down 61.84 points or 0.31% at 19,698.46.

McGraw Hill Financial today, 3 June 2013, announced a voluntary open offer to increase its stake in the company to 75% from 52.77%. McGraw Hill Financial is making a voluntary open offer to acquire up to 1.56 crore shares, representing 22.23% of the total equity shares outstanding in CRISIL at Rs 1,210 per share. The cash offer of Rs 1,210 per share represents a premium of 28.88% to the closing share price of Rs 938.85 on Friday, 31 May 2013.

The tender offer period is expected to begin in July 2013 and conclude in early August 2013. All requirements and procedures under Indian law will be strictly followed, McGraw Hill Financial said in a statement.

CRISIL and S&P Ratings Services first signed an affiliation agreement in 1996. The relationship was further strengthened in 1997 when McGraw Hill Financial acquired its initial equity stake in CRISIL. In 2005, McGraw Hill Financial became CRISIL's majority shareholder.

McGraw Hill Financial, a financial intelligence company, is a leader in credit ratings, benchmarks and analytics for the global capital and commodity markets. Its iconic brands include: Standard & Poor's Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, J.D. Power & Associates, McGraw Hill Construction and Aviation Week.

ICRA is an independent and professional investment information and credit rating agency. the international credit rating agency Moody's Investors Service is ICRA's largest shareholder. As on 31 March 2013, Moodys Investment Company India held 28.51% stake in ICRA.

CARE ratings has established itself as the second-largest credit rating agency in India. Its majority shareholders include leading domestic banks and financial institutions in India.

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